Technology that touches Life

HCL was founded by Shiv Nadar in 1976, at a time when India had a total of just 250 computers. HCL developed the first indigenous micro-computer in 1978. HCL developed a fine grained multi-processor UNIX in 1988. HCL Technologies was spun off as the information technology and software services arm of the enterprise, with listing in 1999. HCL Enterprise was a $6.2 billion global org with 90,000 professionals operating from 31 countries as on June 2012 HCL now has 85,335 on 30th September 2012

Geographies : USA, Europe, Asia Pacific and Japan Consolidated revenue: US$ 4.3 billion (Rs. 22,417 crores), as on 30th September 2012 for HCL Technologies Limited

Of more than 3,000 technology companies in the Bloomberg database, there are only seven with revenue of more than $2.5 billion, a market capitalization of more than $5 billion, and a compounded annual growth rate greater than 25 per cent during the past five years. HCLs success factors are innovative thinking of empowered employees. The basic values of HCL Technology are :Value Centricity, Trust Through Transparency , Employees First , Customers Second: Turning Conventional Management Upside Down. Everyone whatever the job, is an employee - one who can create value for customers or the world if given the opportunity to do so.

Vision:

To be the technology partner of choice for forward looking customers by collaboratively transforming technology into business advantage.

Mission:
"We will be the employer of choice and the partner of choice by focusing on our stated values of Employees First, Trust, Transparency, Flexibility and Value Centricity."

The various departments in HCL are: Sales Department Marketing Department HR Department Admin Department Software Development Department Research and Development Finance and Accounting Department Training Department

Strengths:

Wide range of services Global coverage Strong employee base Support sales activities Up to date regarding the market Associations and Partnership with leading brands

Weakness:

Lost projects in continuation

HCLs dependence on mature markets

April 2010

April 2011

April 2012

Q3 Revenues(US $)

US$685 MN

US$915Mn

US$ 1,048 mn

Profit on Q3 revenues

Up 21.4 % YoY

Up 33.5% YoY

up 14.6% YoY

Net Income(US $)

US$77MN

$ 100 mn/quarter milestone to reach $ 103 mn up 35.0% YoY

US$ 121 mn

Profit on net income

78.1% YoY

up 17.1% YoY

Stock Price: BSE:616.15 Volume:25,979 NSE:615.85 Volume:722,168

HCL Technologies first quarter net profit rose 78% YOY (4% sequentially) to Rs 885 crore, sending its shares to a 52-week high as the India's fourth largest software services provider yet again topped street expectations. Revenue in July-September quarter, was a little lowerthan-expected Rs 6,091 crore, up 31% from a year ago (3% quarter-on-quarter). Analysts on average had expected HCL Tech to report a net profit of Rs 788 crore on revenue of Rs 6,150 crore, according to a CNBC-TV18 poll. Its earnings before interest, taxes, depreciation and amortization were up 70% YoY to Rs 1,351 crore and EBITDA margin was at 22.2% in the first quarter, compared with 22% in Q4 and 17.1% in the year ago first quarter.

HCL Tech had a foreign exchange loss of Rs 61 crore in JulySeptember, compared with a loss of Rs 18 crore a year ago. In US dollar terms, HCL Tech's net income rose 51% year-on-year (4% sequentially) to USD 162 million and revenue was up 11% (3% quarter-on-quarter) to USD 1.1 billion. HCL Tech's strong earnings growth came on the back of several new deal wins and growth across its key geographies of US and Europe, which grew 18% and 17% respectively in US dollar terms on a LTM (last twelve months) basis. It won 12 multi-year multi-million dollar deals during the quarter, across manufacturing, financial services and consumer services verticals.

Jun12
Earnings Per Share
Book Value

Jun11 17.4 85.06

Jun '12

Jun10 15.57 72.69

Jun '11

Jun09 14.88 52.04

Jun '10

Jun08 11.72 48.22

Jun '09 Jun '08

28.13 95.25

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) 2 12 36.21 128.48 2 7.5 23.11 98.66 2 4 20.83 74.82 2 7 20.73 69.75 2 9 18.41 69.26

Free Reserves Per Share (Rs) Bonus in Equity Capital

-58.91

71.21 59.3

64.74 60.17

56.44 60.93

49.1 61.29

Profitability Ratios
Jun '12 Operating Profit Margin(%) 28.18 Jun '11 23.42 Jun '10 27.83 Jun '09 29.72 Jun '08 26.58

Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%)

23.42 24.21 25.01 25.01 21.18

18.68 19.13 22.42 22.42 17.22

21.77 22.43 26.12 26.12 20.18

23.53 24.33 27.23 27.23 20.63

21.56 21.86 25.01 25.01 16.68

Adjusted Net Profit Margin(%) Return On Capital Employed(%)

21.18 33.64

17.22 21.2

20.18 20.44

20.63 32.39

16.68 33.08

Return On Net Worth(%)

29.53

20.45

21.41

28.59

24.29

Adjusted Return on Net Worth(%)

29.53

21.64

22.16

30.52

29.64

Return on Assets Excluding Revaluations

95.25

85.06

72.69

52.04

48.22

Return on Assets Including Revaluations

95.25

85.06

72.69

52.04

48.22

Return on Long Term Funds(%)

34.47

21.21

21.71

36.88

33.1

Jun '12

Jun '11

Jun '10

Jun '09

Jun '08

Liquidity And Solvency Ratios

Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio

1.38 1.42 0.11 0.08 25.27 0.11 28.9 24.68 89.08 4.88 89.08 2.88 1.29 1.26 --74.54

2.09 1.97 0.18 0.18 14.98 0.18 17.29 15.69 59.62 3.63 59.62 2.73 1.05 2.73 -7.35 125.65

1.92 2.19 0.28 0.21 13.24 0.28 15.48 14.13 1,131.13 2.84 1,131.13 2.56 0.84 2.56 -0.4 189.9

1.5 1.71 0.15 0.01 51.14 0.15 43.8 36.34 53.73 3.79 53.73 2.73 1.25 2.73 -8.74 166.69

1.12 1.06 0.01 0.01 62.07 0.01 51.74 41.05 -5.45 --1.51 3.27 --23.28

Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital

Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times

Jun '12 2.02 --94.12

Jun '11 4.04 -0.34 74.42

Jun '10 0.05 -0.39 97.82

Jun '09 --0.31 97.8

Jun '08 --0.64 98.49

49.47 41.89 50.53 58.11 0.3

49.97 40.2 52.78 61.6 0.66

29.86 23.71 71.14 76.93 1.02

55.08 43.97 48.4 58.27 0.39

89.7 70.13 26.48 40.16 0.02

References: www.hcltech.com www.moneycontrol.com www.timesofindia.com

Any questions?